Avery Soars on Strong Quarterly Report

Avery Dennison Corp. beat Wall Street expectations on adjusted earning and revenue for the fourth quarter, it was announced Wednesday. The Glendale label and packaging materials supplier reported net income of $57 million (61 cents a share) in the fiscal fourth quarter ended Jan. 2, compared to $70.6 million (75 cents) for the same quarter last year. Adjusted to exclude restructuring costs earnings per share was 85 cents. Revenue dropped 9 percent to $1.45 billion. Analysts on average expected earnings of 78 cents a share on revenue of $1.45 billion, according to Thomson Financial Network. Avery Dennison Chief Executive Dean Scarborough said that in the coming fiscal year the company will deliver solid organic sales growth, expansion of margins and return on capital and a continued return of cash to shareholders. “We remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline,” Scarborough said in a prepared statement. Shares closed up $3.88, or 6.5 percent, to $63.74 on the New York Stock Exchange.